Supporting Good Practice in Managing Employment Relations

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Supporting Good Practice in Performance and Reward Management – 3PRM

1. Explain at least two purposes of performance management and its relationship to business objectives

The purpose of performance management is to maximise and improve the performance of all staff by achieving continuous improvement within the organisation in line with its mission statement, business plan’s aim and objectives.

Its purpose is to develop staff to meet and at times exceed expectation to achieve their full potential which will benefit them and the organisation. Performance management also provides a foundation for self—development and its helps to ensure that support and direction that staff may require to improve is readily available.

Performance Management is also a major factor of the business approach in its management of staff are aware of what is expected of them to enable the organisation to manage its business and have staff that are skilled and talented to deliver what is expected of them, supported to meet these expectation and be given regular feedback on their performance and in turn have the opportunity to discuss and contribute individually and as part of a team to the targets set, again establishing a culture where staff feel motivated.

2. Identify three components of performance management systems

The performance management of any business is a key factor of its approach to its management of staff, and an effective system should include the following components:-

i) Recruitment and promotion of staff into roles that fits their skills and ability, by setting clear targets, objectives and understanding of performance expected. Continuous audit of its staff skills will also enable the organisation to plan its staff succession.

ii) Creating a supportive work environment and provide on the job training and rewards for good, continuous performance, whilst providing opportunities for staff to identify their own goals and develop skills and competencies. Also develop an open and constructive (transparency) working relationship between all staff i.e. managers and staff members,

iii) Allowing departmental managers/team leaders to develop their own targets and goals in line with the organisation’s business objectives, which will create a sense of equality that would send out a clear message that anyone can achieve performance rewards by attaining expectation and goals set by the organisation

3. Explain the relationship between motivation and performance management, referring to at least two motivations theories

There are two types of motivation: intrinsic motivation and extrinsic motivation.

Intrinsic motivation is defined as the doing of an activity for its inherent satisfactions rather than for some separable consequences.

Extrinsic motivation occurs when things are done to or for people to motivate them. These include rewards, such as incentives, increased pay, praise or promotion and punishments such has disciplinary action, withholding pay or criticism.

Vroom 1964/Porter and Lawler 1968 – the concept of expectancy was originally contained in the valency-instrumentality-expectancy (VIE) theory formulated by Vroom (1964). Valence stands for value, instrumentality is the belief that if we do one thing it will lead to another and expectancy is the probability that action or effort will lead to an outcome and an increase in performance. Effort depends on the likelihood that rewards will follow effort and that the reward is worthwhile i.e. they must be a link between effort and rewards and that the reward should be achievable and again worthwhile.

Latham and Locke 1979 – Goal theory is that motivation and performance are higher when individuals are set specific goals, when goals are difficult but accepted and when there is feedback on performance. Motivation will improve if people have demanding but agreed...
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